Just sold 1 AMZN October 21, 2022 put 109 strike price

[BlueWaterSailor]

Na, it is a troll post.

I'm good with that. My thought is that if some newbie apt to make a real mistake of this type reads it, at least they'll be forewarned.

 

[lindq]

I'm good with that. My thought is that if some newbie apt to make a real mistake of this type reads it, at least they'll be forewarned.

Your intentions are noble. But novice put sellers are on par with born again Jesus freaks and new vegetarians. They have all the answers. The main one being, "I'll be happy to own the stock."

Sure. Got it.

 

[BlueWaterSailor]

Your intentions are noble. But novice put sellers are on par with born again Jesus freaks and new vegetarians. They have all the answers. The main one being, "I'll be happy to own the stock."

Sure. Got it.

For the most part, you're right. But there's always one or two good ones in the crowd, and - as a guy who taught at a vocational school for NYC ghetto kids for a while - I'm used to diving for pearls.

Maybe I should put "r/wallstreetbets and RobinHood FOMO morons stay away" signs around my posts? Just a thought.

 

[ondafringe]

But novice put sellers are on par with born again Jesus freaks and new vegetarians.

I resent that! lol

 

[M.W.]

Lol, clueless clown.

Collected $2.99 per share, thus $299, premium. So that is about 7 days. $2.99 on a call it $109 investment (even though I'm technically not making the investment, but if I do it will be at $109 so I suppose you have to consider it made). $2.99 for 7 days, then multiply that by 52, to get a yearly premium about of $155.48. That's well over a 100% ROI, like 142%. Now, sure, it is going to get assigned to me many times, but who cares? I'll own some Amazon, which I own none of and would not mind owning more. Heck, then I can sell covered calls on it!

This seems like SO MUCH money in the bank. Am I missing anything here?

 

[Damanuelman]

Haha indeed. But to DCA you gotta start small - hence my selling a massive ONE put.

By one Massive Put do you mean one put= 100 shares?

and then you do another one put= 100 shares

I think your miscalculating your risk by about 100x. You will be dca’ing 100 shares every time, you roll your contract down and out another 7 days. But I get it saw that 146% return and completely ignored everything else too.

 

[Darc]

Soy's crystal balls have served him well in the past. He might just pull this one off, dumb luck it maybe though.

 

[cesfx]

By the first sentence of this thread "Collected $2.99 per share, thus $299, premium", OP must be aware of the 100share commitment.

 

[destriero]

Collected $2.99 per share, thus $299, premium. So that is about 7 days. $2.99 on a call it $109 investment (even though I'm technically not making the investment, but if I do it will be at $109 so I suppose you have to consider it made). $2.99 for 7 days, then multiply that by 52, to get a yearly premium about of $155.48. That's well over a 100% ROI, like 142%. Now, sure, it is going to get assigned to me many times, but who cares? I'll own some Amazon, which I own none of and would not mind owning more. Heck, then I can sell covered calls on it!

This seems like SO MUCH money in the bank. Am I missing anything here?

You're f*cking r*tarded. Extrapolating ROI at fixed vol on a position in which you're currently underwater.

 

[BlueWaterSailor]

By the first sentence of this thread "Collected $2.99 per share, thus $299, premium", OP must be aware of the 100share commitment.

"...on a call it $109 investment" strongly implies that he's not.